DRE & LicensingIntermediateCalifornia Exam
What is a 'desist and refrain order' issued by the DRE?
AAn order requiring a licensee to disclose a conflict of interest, per standard DRE licensing procedure
BAn order issued by the Real Estate Commissioner to stop an unlicensed or illegal real estate practice immediatelyCorrect
CAn order requiring a licensee to complete additional education, as required for license renewal in California
DAn order that a listing must be terminated, consistent with Business and Professions Code licensing rules
Why An order issued by the Real Estate Commissioner to stop an unlicensed or illegal real estate practice immediately Is Correct
Answer B: An order issued by the Real Estate Commissioner to stop an unlicensed or illegal real estate practice immediately
A desist and refrain order (D&R order) is an administrative enforcement tool used by the Real Estate Commissioner to immediately stop illegal real estate activities, including operating without a license or engaging in fraudulent subdivision sales. Violation of a D&R order can result in criminal penalties.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Math Concepts
State-Specific Concepts
DRE Regulation
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